TaxTMI 
TaxTMI 
2026 (8) TMI 1152
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....enishment imports. 1.2 As per appellant, outbreak of COVID-19 pandemic severely crippled global supply chains. Overseas suppliers of metal scrap were unable to fulfil their obligations due to container shortages and port closures, making physical import of authorized 2,120 MT commercially and logistically impossible. To meet strict international export deadlines, they statedly steered its sourcing strategy, procuring required raw materials from domestic Indian market upon full payment of domestic taxes (GST). The official Customs Item Wise Ledger shows that out of 2,120 MT limit, they imported only 463.315 MT raw materials. A forensic Chartered Accountant Certificate confirming that export goods were manufactured out of duty-paid domestic inputs, calculating eligible Duty Drawback of Rs. 37,60,451.71. 1.3 As per appellant, they applied for conversion of 30 Shipping Bills from AA to DBK under Section 149 of the Customs Act which was arbitrarily rejected by Commissioner vide OIO No. AHM-CUSTM-000-PR-COMMR-60-2024-25 dated 03.01.2025, incorrectly equating "declaration of intent" with "actual availment" (Paras 14 & 15 of the impugned order) and rigidly applying an ultra vires thr....
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.... also disposed of by following directions, which would serve the ends of justice: (ii) The petitioner shall be entitled to MEIS scheme benefit in respect of the exports of the goods by the respondent authorities in view of the amendment of the shipping bills under Section 149 of the Customs Act, 1962. The respondent authorities are directed to process the claim of the petitioner for MEIS scheme." * In view of above ratio, their initial declaration of intent for AA Scheme was merely a procedural step that never materialized into substantive availment. It is conclusively proven that the inputs utilized were duty paid, the substantive conditions for DBK are perfectly satisfied. The Adjudicating Authority's reliance merely on declaration of intent to deny a substantive right directly contravenes this jurisdictional ruling. 2.4 The Ultra Vires Nature of the Three-Month Bar- * In Para 18 and 19 of the OIO, the Adjudicating Authority rejected their application for conversion of shipping bills on the grounds of "time bar," relying on Paragraph 3(a) of the CBIC Circular No. 36/2010-Cus which prescribes a three-month limitation from the Let Export Order date. * ....
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....Court. (i) Whether benefit of conversion from Drawback scheme to DFIA scheme can be allowed at any time for the clearances which had taken place almost four years back? (ii) Whether the Tribunal was justified in holding that benefit of conversion from Drawback scheme to DFIA scheme can be allowed for exports made in past after the period of 3 months are over from the date of such export? (iii) Whether the Tribunal is correct in holding that the Circular is only laying down a procedural guideline and the conditions mentioned therein are not required to be fulfilled by the exporter to take the advantage of the scheme? (iv) Whether the Tribunal is justified in following the judgment of Mumbai Tribunal and not appreciating the law laid down by this Hon'ble Court? 6. We are of the view that no error, not to speak of any error of law could be said to have been committed by the Tribunal in passing the impugned order. Section 149 is applicable at the relevant point of time. In fact, the questions as proposed by the Revenue cannot be termed as substantial questions of law as the issue is squarely covered by a decision of this Court in the case of....
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...., is highly punitive and inequitable. Appellants thus sought the relief prayed for. 3. The appellant exported brass billets (17 Shipping Bills) and copper billets (13 Shipping Bills) from ICD Tumb and initially claimed benefit of Advance Authorization Scheme. Later on, they requested to convert these 30 shipping bills from Advance Authorization Scheme to Drawback scheme, stating that due to COVID-related supply chain disruption and other difficulties, they could not fully use the Advance Authorization imports. The request was supported by various judgments of CESTAT Ahmedabad, CESTAT Madras etc. and also the fact that Section 149 itself does not prescribe a specific time limit. 3.1 As per CBIC Circular No. 36/2010-Cus., conversion is allowed only where the Commissioner is satisfied that documentary evidence existing at the time of export proves eligibility, and where the request is made within three months of the Let Export Order, among other conditions. Reference was also made to Notification No. 11/2022- Customs (N.T.) dated 22.02.2022 wherein the manner and time limit for applying for post export conversion of Shipping Bill in certain cases is provided. The Adjudicating Au....